Effective Tax Rates in Corporate Taxation: a Quantile Regression for the EU


  • Francisco J. Delgado University of Oviedo
  • Elena Fernandez-Rodriguez University of Oviedo
  • Antonio Martinez-Arias University of Oviedo




Corporate Taxation, Size, Effective Tax Rate, Quantile Regression, European Union


In this work we study the determinants of the effective tax rates for corporate taxation in countries of the European Union. First, we carry out an exhaustive review of the empirical literature where no consensus is reached about the signs of the determinants and we can observe that in the case of the European countries this topic has scarcely received attention, contrary to the US case. Then from the Compustat database and for the period 1992–2009, we estimate quantile regressions that allow possible nonlinear relationships to be detected. The estimations reveal different effects of factors such as size, debt, asset composition and profitability on the effective corporate tax rate depending on the decile. In short, for companies with lower ETRs, the most influential variables are the size, the intensity of inventories and the profitability, whereas for the companies that suffer the highest fiscal pressure it is debt that turns out to be the strongest determinant. These results justify the employment of quantile regression instead of the traditional linear approximations.

DOI: http://dx.doi.org/10.5755/j01.ee.25.5.4531

Author Biographies

Francisco J. Delgado, University of Oviedo

Associate Professor of Publics Economics

Deputy Head Department of Economics

Elena Fernandez-Rodriguez, University of Oviedo

Associate Professor, Department of Accounting,

Antonio Martinez-Arias, University of Oviedo

Professor, Department of Accounting

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